MercoPress. South Atlantic News Agency

New chapter of pulp mills dispute unveils Thursday

A preliminary report from a Canadian consultant, contracted by the World Bank concludes that the pulp mills to be built in Uruguay and which has become a serious contentious issue with Argentina “will not contaminate”.

The final and definitive pulp mills environment assessment report from Ecometrix Consultants, and from which a significant World Bank financing of the project depends, is scheduled to be officially announced next Thursday.

One of the pulp mills is under construction in Fray Bentos, just across from Argentina, on the jointly managed border river Uruguay and Argentina has repeatedly complained the massive industrial project will pollute the water, contaminate the air and have long term health effects on the local population plus condemning the regional tourism industry.

Apparently the report was tentatively published over the weekend in the (World Bank) International Finance Corporation website and clearly established that the pulp mills emissions will have no harmful effects on the river Uruguay waters, neither on the Argentine or Uruguayan sides of the coast.

Furthermore the report allegedly points out there's no risk from the air for human health, although on occasions some strong odors could be detected on the Uruguayan side in the Fray Bentos area.

The environmental assessment report contracted by the World Bank is anxiously expected by both sides, Uruguay and Argentina that have seen the alleged potential contamination dispute considered in the International Court of The Hague and by the Mercosur Tribunal, plus the souring of bilateral relations.

Based on this report which was requested last April, the World Bank will decide if it finally releases two loans totaling 400 million US dollars to help with the financing of the Botnia/Finaland Project and a second, so far only a blueprint, from Spain's Ence.

Canadian experts Wayne Dwernychuk and Neil McCubbin were also involved in a first assessment, December 2005, when they concluded that the accumulative impact of the environmental assessment was incomplete, as the Argentine government had argued.

However they also anticipated that many of the accusations against the pulp mills were "irrational" and showed a lack of in depth knowledge of the projects.

The first report stated that the construction of two pulp mills, Botnia and Ence, respects "technical requirements" as demanded by the financial institutions, and the effects of the mills would not have social, economic or environmental relevant negative impacts.